Primo Water (PRMW) Earns “Buy” Rating from Barrington Research

Primo Water (NASDAQ:PRMW)‘s stock had its “buy” rating restated by research analysts at Barrington Research in a note issued to investors on Wednesday. They currently have a $20.00 price objective on the stock. Barrington Research’s price objective suggests a potential upside of 38.41% from the stock’s previous close. Barrington Research also issued estimates for Primo Water’s Q1 2019 earnings at $0.04 EPS and Q3 2019 earnings at $0.21 EPS.

The analysts wrote, “We are maintaining our OUTPERFORM investment rating on PRMW, but slightly reducing our price target to $20 (from $21) given Q3’s disappointing results and management’s cautious outlook for the next two to three quarters. That said, our long-term enthusiasm for this idea remains very high and we believe that Primo shares should be bought on any weakness the stock may experience in this morning’s trading. We arrive at our price target of $20 by attaching a 15x multiple to our 2019 adjusted EBITDA estimate. We assume approximately $175 million in net debt 12 months from now.””

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PRMW has been the topic of several other reports. Zacks Investment Research cut Primo Water from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 10th. BidaskClub raised Primo Water from a “sell” rating to a “hold” rating in a research note on Wednesday, October 24th. Finally, BMO Capital Markets cut their target price on Primo Water from $18.00 to $17.00 and set a “market perform” rating on the stock in a research note on Wednesday, October 24th. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $19.50.

Shares of NASDAQ PRMW traded down $0.20 during trading hours on Wednesday, hitting $14.45. The company’s stock had a trading volume of 16,246 shares, compared to its average volume of 233,266. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.06 and a quick ratio of 0.88. The stock has a market capitalization of $669.85 million, a PE ratio of -51.41, a PEG ratio of 3.90 and a beta of 0.61. Primo Water has a 12 month low of $11.16 and a 12 month high of $20.72.

Primo Water (NASDAQ:PRMW) last posted its earnings results on Tuesday, November 6th. The company reported $0.18 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.18. The company had revenue of $81.80 million for the quarter, compared to analysts’ expectations of $83.26 million. Primo Water had a positive return on equity of 10.19% and a negative net margin of 17.88%. Primo Water’s quarterly revenue was down .5% on a year-over-year basis. During the same period last year, the firm earned $0.15 earnings per share. As a group, equities research analysts anticipate that Primo Water will post 0.38 earnings per share for the current year.

In related news, Director Charles A. Norris sold 25,000 shares of the firm’s stock in a transaction dated Monday, August 20th. The stock was sold at an average price of $20.41, for a total value of $510,250.00. Following the sale, the director now directly owns 167,556 shares of the company’s stock, valued at $3,419,817.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Charles A. Norris sold 43,454 shares of Primo Water stock in a transaction that occurred on Thursday, September 6th. The shares were sold at an average price of $19.74, for a total value of $857,781.96. Following the sale, the director now directly owns 4,282 shares in the company, valued at $84,526.68. The disclosure for this sale can be found here. Insiders sold 243,509 shares of company stock worth $4,895,288 over the last three months. 13.50% of the stock is owned by insiders.

A number of institutional investors have recently bought and sold shares of PRMW. BlackRock Inc. boosted its position in Primo Water by 5.6% during the 1st quarter. BlackRock Inc. now owns 1,462,268 shares of the company’s stock valued at $17,123,000 after acquiring an additional 77,326 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Primo Water by 16.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 793,187 shares of the company’s stock valued at $9,288,000 after acquiring an additional 110,186 shares in the last quarter. Allianz Asset Management GmbH boosted its position in Primo Water by 3.2% during the 1st quarter. Allianz Asset Management GmbH now owns 247,576 shares of the company’s stock valued at $2,899,000 after acquiring an additional 7,649 shares in the last quarter. Bank of Montreal Can boosted its position in Primo Water by 5,864.6% during the 2nd quarter. Bank of Montreal Can now owns 11,452 shares of the company’s stock valued at $200,000 after acquiring an additional 11,260 shares in the last quarter. Finally, Cornerstone Wealth Management LLC bought a new stake in Primo Water during the 2nd quarter valued at approximately $208,000. 74.07% of the stock is currently owned by institutional investors and hedge funds.

Primo Water Company Profile

Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water, and water dispensers in the United States and Canada. It operates in three segments: Refill, Exchange, and Dispensers. The Refill segment sells filtered drinking water dispensed directly to consumers through self-service machines.